General Fund revenue collections up 7.6 percent from previous year and fiscal-year-to-date collections up 9.9 percent, gains driven by payroll withholding, corporate, and recordation tax collections
RICHMOND, VA (STL.News) Governor Ralph Northam today announced that September General Fund revenue increased 7.6 percent from the previous year, driven by growth in payroll withholding, corporate, and recordation tax collections.
“Virginia’s General Fund revenues are increasing, and we have been able to avoid the major revenue shocks that other states are experiencing because of the ongoing pandemic,” said Governor Northam. “This is the result of the proactive measures we have taken to mitigate the impacts of the virus on our economy and put the Commonwealth on the path toward a strong recovery.”
“September completes the first quarter of fiscal year 2021 and is a significant month for revenue collections,” said Secretary of Finance Aubrey Layne. “Overall, this quarter’s revenue performance confirms that we took a measured and prudent path in the updated Interim Forecast released in August.”
With one more deposit day than September of last year, payroll withholding grew 11.4 percent for the month. Furthermore, the first nonwithholding estimated payment for fiscal year 2021 was due in September. Collections in nonwithholding grew 2.4 percent over last year. Collections of sales and use taxes, reflecting August sales, fell 3.2 percent in September—almost all of the decline is due to accelerated sales tax (AST) refunds. As with nonwithholding, the due date for the first estimated payment for corporate income tax collections for the fiscal year was also due in September. Collections of corporate income tax increased 17.4 percent in September from September of last year. Finally, collections of wills, suits, deeds, and contracts—mainly recordation tax collections—were $56.6 million in September, compared with $36.6 million in September of last year.
On a fiscal year-to-date basis, total revenue collections rose 9.9 percent, well ahead of the annual forecast of a 1.8 percent decrease. On a fiscal year-to-date basis, collections of payroll withholding taxes—63 percent of General Fund revenues—increased 2.4 percent, equal to the annual estimate. Year-to-date nonwithholding collections were $982.4 million compared with $617.6 million in the same period last year, increasing by 59.1 percent, ahead of the annual estimate of a 3.6 percent decline. Sales tax collections—16 percent of General Fund revenues—increased 7.5 percent through September, ahead of the annual forecast calling for a 9.7 percent decrease. Through the first quarter of the fiscal year, corporate income tax collections rose 36.1 percent from the same period last year, ahead of the annual estimate of a 3.0 percent increase. Finally, collections of wills, suits, deeds, and contracts were up 35.9 percent in the first quarter, well ahead of the forecasted 12.6 percent decline.
The full report is available here.